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Now there is only Two Shipping companies in Hawaii. Pasha Group and Matson.
Horizon Lines announced Tuesday it is selling its Hawaii shipping operation to The Pasha Group for roughly $141.5 million.
In becoming part of Pasha, Horizon’s Hawaii business would operate alongside Pasha’s existing operations.
Wonder, if or when prices will rise. Only time will tell??
There's also a chance it could lower shipping costs, as the economist in your article explained.
Quote:
“It’s possible the everyday person would see some increase in goods, but mergers also take place because firms expect to see cost savings, and cost-savings can also push prices down,” La Croix said. “At this point, it is too early to tell.”
There's also a chance it could lower shipping costs, as the economist in your article explained.
This is only slightly less likely than the chance of Guam capsizing.
Efficiency won't go up enough to be a factor. At the same time, now there are two options where there were three. Two is rivalry, not competition, and it's competition that drives prices down.
This is only slightly less likely than the chance of Guam capsizing.
Efficiency won't go up enough to be a factor. At the same time, now there are two options where there were three. Two is rivalry, not competition, and it's competition that drives prices down.
Believe what you will, I think there is still a possibility, and only time will tell.
Several points lead me to this conclusion. First, even after the merger, Matson will still be the 800# gorilla. How does a smaller rival go after a bigger share of the market? Lowering prices is a time honored strategy.
Second, Horizon couldn't have been doing that well to be willing to sell two of their lines... so that indicates to me that Pasha could make Horizon more efficient by reorganizing their operations, which could lower operating costs. It's hard for me to believe Pasha would have made the deal unless they could do it better.
Third, the announcements say that Pash will continue operating Horizon as a separate unit. My guess is that Pasha will concentrate on the vehicle transport business, where they have the best specialized ships, and Horizon will focus on the containerized shipments. But that's just a guess, and it will be interesting to see what they do.
Nope prices will not drop. ever.
I moved to 'merica in 2010 and also shipped my car up. Prices were $1000 for my mid-sized car. I moved back to honolulu a couple years later due to the bad job market.
I am moving back to 'merica again, this time with job reserved. Price to ship the same car up is $1300. That's pretty steep inflation for 4 years.
Understand that Hawaii works differently with commerce and economics with cost of products, goods, and service. EVERYTHING is hinged on the the might of labor unions. Hawaii unions have the most power and influence vs. most if not all other states, and that results in ridiculously high wages which transfers to you the consumer. No matter the company or competition all business runs through services of the labors which is why their unions has Hawaii in its pocket.
The reason for sharp cost increases that you see here are directly due to the constant renegotiation of wages by unions every couple of years.
Nope prices will not drop. ever.
I moved to 'merica in 2010 and also shipped my car up. Prices were $1000 for my mid-sized car. I moved back to honolulu a couple years later due to the bad job market.
I am moving back to 'merica again, this time with job reserved. Price to ship the same car up is $1300. That's pretty steep inflation for 4 years.
I just checked, and Pasha quotes $1,100 Honolulu>>>California. Same price it's been for maybe 5 years.
There's also a chance it could lower shipping costs, as the economist in your article explained.
Probably not.....
"Shippers using Matson Inc. for service to or from Hawaii will be paying an average 5.4 percent more.
The company announced Tuesday that rates will increase by $225 per westbound container and $110 per eastbound container, effective January 4."
Location: not sure, but there's a hell of a lot of water around here!
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Quote:
Originally Posted by whtviper1
Probably not.....
"Shippers using Matson Inc. for service to or from Hawaii will be paying an average 5.4 percent more.
The company announced Tuesday that rates will increase by $225 per westbound container and $110 per eastbound container, effective January 4."
Looks like Matson didn't waste time in raising rates. Wonder if Pasha will follow?
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